Wednesday, January 10, 2024

 

US Administration sets out rules for clean hydrogen credits

10 January 2024


The White House says its tax credit incentive stands to be the most consequential policy supporting the deployment of clean hydrogen in US history - but stipulations that would make credits available only to the newest clean electricity generating units would exclude most of the US nuclear fleet.

(Image: Pixabay)

The proposed regulations for claiming the so-called 45V Clean Hydrogen Production Tax Credit established under the 2022 Inflation Reduction Act issued by the US Treasury Department and Internal Revenue Service were published in the Federal Register on 26 December.

The Inflation Reduction Act (IRA) of 2022 provides a production credit for each kilogram of qualified clean hydrogen produced by a taxpayer at a qualified clean hydrogen production facility. Providing tax credits of up to USD3 per kilogram of hydrogen to projects with low lifecycle greenhouse gas emissions, the White House says the 45V credit accompanies other hydrogen programmes such as the Department of Energy's Regional Clean Hydrogen Hubs Program.

The credit amount is dependent on the emissions intensity of the hydrogen production process. However, the proposed regulations stipulate that only clean power generators that began operating within three years of the hydrogen facility entering service will be eligible.

This requirement effectively eliminates all existing US clean energy generating capacity from qualifying for the credit, instead requiring hydrogen producers to construct purpose-built energy projects for their production facilities, Nuclear Energy Institute (NEI) President Maria Korsnick said.

"This requirement will make many clean hydrogen projects uneconomic and will create years of delay for the few projects that can move forward in the face of the Administration's added constraints," she added. "The US nuclear fleet is well positioned to propel the US as a global leader in clean hydrogen production, but the Administration's proposal will undercut the development of a domestic clean hydrogen economy and will bolster the competitiveness of our global competitors.

"By explicitly allowing the zero-emission nuclear power production tax credit to be claimed in conjunction with the H2 Credit, the authors of the IRA made clear that existing nuclear facilities were eligible for the H2 Credit. NEI will continue to engage the Administration to ensure the H2 credit is implemented as clearly intended by Congress. Doing so will ensure nuclear energy can fill its full potential in decarbonising the hardest-to-abate sectors of our economy and will accelerate progress toward a cleaner energy economy."

Last October, US President Joe Biden and Energy Secretary Jennifer Granholm announced seven regional clean hydrogen hubs that will share USD7 billion in federal funding to accelerate the commercial-scale deployment of low-cost, clean hydrogen. Several hubs' plans envisage using nuclear energy, with Constellation Energy, a major participant in the MachH2 hub, planning to build the world's largest nuclear-powered clean hydrogen production facility at its LaSalle Clean Energy Center in Illinois.

That facility will cost an estimated USD900 million, produce an estimated 33,450 tonnes of clean hydrogen per year and create thousands of "good-paying" jobs, but will need the tax credits to be cost-effective.

"The proposed rule flies in the face of Congress's clear intent to use America's nuclear energy to produce hydrogen," the company told the American Nuclear Society.

Senator Joe Manchin, chairman of the US Senate Energy and Natural Resources Committee, said the proposed rule "makes absolutely no sense", imposing onerous rules not included in the IRA that limit the ability of the credit to help develop a domestic hydrogen market. The proposed rules "will only make it more difficult to jumpstart the hydrogen market, which will be a critical part of our secure energy future", he said.

The proposed regulations are open to public comment until 26 February, and a public hearing will be held on 25 March.

Researched and written by World Nuclear News


New Discovery Overcomes Major Hurdle in Hydrogen Energy Economy

  • The new material, a lanthanum hydride compound modified with strontium and oxygen, allows high-rate conduction of hydride ions at room temperature.

  • This development overcomes previous limitations requiring water and continuous hydration in hydrogen fuel cells, simplifying design and reducing costs.

  • The breakthrough promises to enhance the safety, efficiency, and energy density of hydrogen-based energy solutions, marking a significant step towards a viable hydrogen energy economy.
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Researchers led by Genki Kobayashi at the RIKEN Cluster for Pioneering Research in Japan have developed a solid electrolyte for transporting hydride ions (H) at room temperature.

Its a breakthrough that means the advantages of hydrogen-based solid-state batteries and fuel cells are within practical reach, including improved safety, efficiency, and energy density, which are essential for advancing towards a practical hydrogen-based energy economy.

The study paper was published in the scientific journal Advanced Energy Materials.

For hydrogen-based energy storage and fuel to become more widespread, it needs to be safe, very efficient, and as simple as possible. Current hydrogen-based fuel cells used in electric cars work by allowing hydrogen protons to pass from one end of the fuel cell to the other through a polymer membrane when generating energy.

Efficient, high-speed hydrogen movement in these fuel cells requires water, meaning that the membrane must be continually hydrated so that it does not dry out. This is a constraint that adds an additional layer of complexity and cost to battery and fuel cell design that limits the practicality of a next-generation hydrogen-based energy economy.

To overcome this problem, scientists have been struggling to find a way to conduct negative hydride ions through solid materials, particularly at room temperature.

Kobayashi has said, “We have achieved a true milestone. Our result is the first demonstration of a hydride ion-conducting solid electrolyte at room temperature.”

The team had been experimenting with lanthanum hydrides (LaH3-δ) for several reasons; the hydrogen can be released and captured relatively easily, hydride ion conduction is very high, they can work below 100° C, and have a crystal structure.

But, at room temperature, the number of hydrogen atoms attached to lanthanum fluctuates between 2 and 3, making it impossible to have efficient conduction. This problem is called hydrogen non-stoichiometry, and was the biggest obstacle overcome in the new study.

When the researchers replaced some of the lanthanum with strontium (Sr) and added just a pinch of oxygen – for a basic formula of La1-xSrxH3-x-2yOy, they got the results they were hoping for.

The team prepared crystalline samples of the material using a process called ball-milling, followed by annealing. Then they studied the samples at room temperature and found that they could conduct hydride ions at a high rate.

Then, they tested its performance in a solid-state fuel cell made from the new material and titanium, varying the amounts of strontium and oxygen in the formula. With an optimal value of at least 0.2 strontium, they observed complete 100% conversion of titanium to titanium hydride, or TiH2. This means that almost zero hydride ions were wasted.

Kobayashi noted, “In the short-term, our results provide material design guidelines for hydride ion-conducting solid electrolytes. In the long-term, we believe this is an inflection point in the development of batteries, fuel cells, and electrolytic cells that operate by using hydrogen.”

The next step will be to improve performance and create electrode materials that can reversibly absorb and release hydrogen. This would allow “storage batteries” to be recharged, as well as make it possible to place hydrogen in storage and easily release it when needed, which is a requirement for hydrogen-based energy use.

***

This is a remarkable breakthrough in making fuel cells more practical. Not quite noted above is that today’s designs need an above freezing environment. All the time, not just when running. For much of the time and much of the world that is killer. Moreover a freeze would destroy a fuel cell, thus even a rare freeze zone would entail considerable risk. The team hasn’t said anything specific yet. But this is promising.

With that in mind this team’s work looks like quite a breakthrough. Now if the storage issue could just get a big cost and safety breakthrough . . .

By Brian Westenhaus via New Energy and Fuel



Scientists create DNA hydrogel-based, solar-powered evaporation system for highly efficient seawater desalination

Solar-powered simultaneous highly efficient seawater desalination with smart DNA hydrogels
The solar-powered GDH desalination and extraction platform. Credit: Science Advances, doi: 10.1126/sciadv.adj1677

Minerals as well as freshwater can be obtained by desalinating seawater with solar power facilities for the sustainable development of human civilization. For instance, hydrogels have shown great power for solar-powered water evaporation potential, although the highly efficient and specific target extraction method remains to be expanded.

In a recent report published in Science Advances, Hanxue Liang and a team of researchers at the college of chemistry, and  in China, describe the process of highly efficient  desalination and the specific extraction of uranium with smart DNA hydrogels.

The DNA hydrogels promoted the evaporation of water, and the uranyl-specific DNA hydrogel exhibited a high capture capacity of 5.7 mg per gram for uranium from natural seawater due to rapid ion transport driven by solar-powered interfacial evaporation and high selectivity. These developments could enable easy-to-use devices suited for future seawater treatment.

Seawater desalination

Human society can be developed sustainably through access to sufficient freshwater and energy. The past few decades have witnessed the growing scarcity of freshwater as a threat to developing society, where rapid population and economic growth too have posed challenges to sustainable development.

To facilitate access to freshwater, life scientists have used ocean resources such as seawater desalination to account for up to 97% of the total water content on Earth.

Solar-powered simultaneous highly efficient seawater desalination with smart DNA hydrogels
Preparation and characterizations of the GDH. (A) Schematic illustration of the GDH 
units. Credit: Science Advances, doi: 10.1126/sciadv.adj1677

Researchers have developed solar-powered seawater desalination as a promising method to produce seawater without additional energy consumption. Alongside desalination of seawater, a variety of valuable minerals and resources rich in the ocean can be extracted simultaneously, including uranium and lithium.

Hydrogels are soft materials made of hydrophobic 3D crosslinked polymer networks with high quantities of water, with a soft unique nature, versatility, and excellent biocompatibility.

Water evaporation

Hydrogel-based biomaterials have an ultrahigh water evaporation rate. In this work, Liang and team created a DNA hydrogel-based, solar-powered evaporation system to produce freshwater and target metal ion extraction from natural seawater. The scientists synthesized DNA hydrogels made of functional DNA-tethered polyacrylamide networks through a one-step copolymerization process.

The researchers introduced graphene oxide (GO) into the hydrogel to create GO-loaded DNA hydrogels that were easily recycled by a simple, thermally-driven elution method to test the feasibility of producing freshwater, and to extract valuable metal ions from natural seawater.

Solar-powered simultaneous highly efficient seawater desalination with smart DNA hydrogels
GDH for efficient water activation and evaporation. (A) Schematic illustration of different types of water molecules in GDH network. (B and C) Raman spectra showing the fitting peaks representing IW and FW in water and GDH, respectively. (D) Differential scanning calorimetric curves of phase change energy changes of water in pure water, PAM, and GDHs. (E) Calculated enthalpy of evaporation of pure water and water in GDHs. (F) Mass loss of water with GDHs under one sun. (G) The solar evaporation rate and energy efficiency of GDHs under one sun. (H) Comparison of the water evaporation performance of GDH with previously reported hydrogels under one solar irradiation. PVA, polyvinyl alcohol. PILs, poly(ionic liquid)s. (I) Temperature changes of different GDHs under one solar irradiation. Credit: Science Advances, doi: 10.1126/sciadv.adj1677

Characterizing the graphene-oxide-loaded DNA hydrogels (GDH)

Liang and colleagues prepared the graphene-oxide loaded DNA hydrogels in a one-step copolymerization reaction by using acrylamide, N,N'-methylenebisacrylamideacrydite-modified DNA, with graphene-oxide added before polymerization.

The researchers applied confocal microscopy to investigate the microstructures of the as-prepared materials. The team noted the improved mechanical properties of the DNA hydrogel upon introducing graphene oxide. The addition of the compound into the DNA hydrogel enabled highly efficient solar light-absorbing properties. The materials showed broadband and a highly efficient absorption wavelength range.

The experiments

The research team explored the competence of the biomaterials for highly efficient solar-powered water evaporation. Where the materials formed  with hydrophilic polymer chains to confine water molecules within a hydrophilic hydrogel construct.

The process led to the formation of three types of water molecules, including free water, intermediate water, and bound water, where the process required less energy for intermediate water to escape the hydrogel than for free water to transit from the bulk liquid phase.

Hydrophilic groups in the material facilitated the activation of water molecules and reduced the evaporation energy of water by regulating the hydrogen bonding structures of encapsulated . The researchers used Raman spectroscopy to differentiate varieties of water structures in pure water and within the hydrogel material.

Solar-powered simultaneous highly efficient seawater desalination with smart DNA hydrogels
UO22+ adsorption capacity of GDH in spiked simulated seawater. (A) Effect of pH on the equilibrium adsorption capacity of UO22+ in aqueous solution under simulated sunlight or in the darkness. (B) UO22+ adsorption isotherms by GDH. (C) Kinetics of UO22+ adsorption by GDH in UO22+ spiked simulated seawater at different concentrations. (D) XPS analysis of GDH before and after UO22+ binding. (E) Adsorption capacity of GDH for coexisting interfering ions with concentration 100 times higher than that in natural seawater. (F) Equilibrium adsorption capacity of UO22+ for six consecutive adsorption-desorption cycles under simulated light or in the darkness. (G) Numerical simulation of ion migration driven by a purely diffusive flow and in the presence of a temperature gradient, respectively. (H) Schematic illumination of the formation of an ion migration equilibrium of the GDH system upon solar evaporation. (I) Performance of GDH for uranium extraction in the presence of heating or the solar powered interfacial evaporation process. (J) Uranium extraction from a mine water mimic sample by the GDH in the dark or under illumination. Credit: Science Advances, doi: 10.1126/sciadv.adj1677

Graphene-oxide loaded DNA hydrogels to extract uranium

Uranium is distributed in oceans as a key element in nuclear fuels with magnitudes of abundance when compared to land. The main form of uranium in seawater is uranyl ions, with a low concentration, where the elements coexist with many interfering ions including vanadium.

DNAzymes or catalytic DNA that contains short DNA oligonucleotides can extract rare metal ions such as uranyl ions, due to their high affinity and specific metal ion binding properties.

To facilitate the process, the team encoded the DNA units that were incorporated into the graphene-oxide hydrogel with the sequence of uranyl-selective DNAzyme to extract the uranyl ions. The control experiments showed how the hydrogel without DNA had a much lower uranium adsorption capacity.

The biomaterial was also capable of selectivity for uranium in the presence of vanadium ions, and the incorporation of DNA provided a key for selectivity with uranium adsorption. The outcomes outlined the wide range of anti-biofouling activity of the biomaterial for long-term applications in seawater desalination and during uranium extraction.

Further experiments and extracting uranium from natural seawater

Liang and team performed numerical simulations to compare the migration of ions through diffusion, and noted the presence of a temperature gradient upon illumination. The temperature gradient increased the transport of ions to promote the process in the entire hydrogel construct.

The DNA units in the biomaterial selectively extracted diverse targets to establish a lithium ion-dependent DNAzyme, as well as sodium, potassium, and magnesium metal ion extraction with smart DNA hydrogels.

Solar-powered simultaneous highly efficient seawater desalination with smart DNA hydrogels
Extraction of uranium from seawater while obtaining freshwater. (A) Testing the water evaporation rate and energy efficiency in seawater for 10 days proved the long-term stability and durability of the evaporator. (B) Extraction of uranium from natural seawater. (C) Change of UO22+ concentration in natural seawater. (D) Photograph of the solar desalination system in operation at the test location Bohai Sea, Tianjin, China. (E) Solar radiation and water evaporation rate recorded over time on a sunny day from 10:00 to 15:00. (F) The concentrations of the four primary ions measured in samples before and after actual seawater desalination showed effective removal of salt ions. Credit: Science Advances, doi: 10.1126/sciadv.adj1677

While the  loaded DNA hydrogel biomaterial showed excellent capacity for uranyl extraction from natural seawater, the extraction capacity increased under solar illumination in an endothermic process. The uranium extraction performance with the biomaterial was as competent as that obtained with advanced extraction materials.

Liang and team tested the performance of the biomaterial with natural seawater via inductively coupled plasma optical emission spectroscopy in the Bohai sea. The outcomes showed the capacity to simultaneously evaporate water ultrafast and highly selectively from natural seawater with the solar-powered biomaterial-integrated device.

Outlook

In this way, Hanxue Liang and team invented a DNA hydrogel-based, solar-powered evaporation system to simultaneously facilitate high-speed seawater desalination and highly specific extraction of minerals including uranium and lithium. The highly hydrophilic network structures facilitated water evaporation enthalpy in the hydrogel to effectively promote solar-powered seawater evaporation.

The team introduced DNA structures to improve the evaporation efficiency of the platform and facilitated the  with specific metal ion extraction properties for metal ion extraction under illumination. The smart DNA hydrogels are promising for freshwater harvesting and uranyl extraction from seawater, and for uranyl-enriched nuclear wastewater treatment.

More information: Hanxue Liang et al, Solar-powered simultaneous highly efficient seawater desalination and highly specific target extraction with smart DNA hydrogels, Science Advances (2023). DOI: 10.1126/sciadv.adj1677


Journal information: Science Advances 


© 2024 Science X Network

 

China Replaces Western Energy Firms in Iraq’s Supergiant Oil Field

  • West Qurna 1, holding over 20 billion barrels of reserves, is a key asset in Iraq's oil industry, with PetroChina now leading its development.

  • ExxonMobil's withdrawal from the Common Seawater Supply Project and other Iraqi energy projects opened the door for Chinese and Russian firms to fill the gap.

  • The change in leadership at West Qurna 1 reflects a broader trend of increasing Chinese influence in Middle Eastern oil markets and the decline of Western hegemony.
  •  Community

The official handover of the lead operator role on one of the world’s biggest oil fields – West Qurna 1 – from the U.S.’s ExxonMobil to China’s PetroChina was completed last week. However, unofficially China took control of the supergiant oil field from the moment at the end of June 2018 that ExxonMobil broke off talks with the Iraqi government about it being the lead partner in the country’s Common Seawater Supply Project (CSSP) and began a strategic withdrawal from all Iraq energy projects, as did other Western energy firms. Chinese and Russian firms were happy to step into the project voids created. As a very high-ranking official from the Kremlin said recently at a meeting with senior government figures from Iran: “By keeping the West out of energy deals in Iraq […] the end of Western hegemony in the Middle East will become the decisive chapter in the West’s final demise,” a senior source who works closely with the European Union’s energy security apparatus exclusively told OilPrice.com

West Qurna 1 is located around 65 kilometres from southern Iraq’s principal oil and export hub of Basra and holds a considerable portion of the estimated 43 billion barrels of recoverable reserves held in the entire supergiant West Qurna field. Originally, West Qurna 1 was thought to have around 9 billion barrels of these reserves, but early in 2021 Iraq’s Oil Ministry revised its recoverable reserves estimate for the field up to a total of over 20 billion barrels. Given this, the Ministry increased the target for the present phase of development from the previous 500,000 barrels per day (bpd) to 700,000 bpd, with the field currently producing around 550,000 bpd. The Ministry also said at that time that although the original production plateau target of 2.825 million bpd (by the early 2030s) had been negotiated down to 1.6 million bpd during contract discussions with participating oil companies at the time, the plateau target may well be raised again in the coming five years. 

The main companies involved in those discussions were PetroChina - the listed arm of the China National Petroleum Corporation (CNPC) – which then completed the purchase of a 32.7 percent stake in West Qurna 1, and ExxonMobil, which also took a 32.7 percent stake. Almost immediately, PetroChina sought to establish itself as the dominant force on the site. As analysed in full in my new book on the new global oil market order, the strategy employed to effectively sideline ExxonMobil is one that China has repeatedly used in similar situations across the Middle East, with a key element being the often surreptitious and gradual acquisition of a range of huge ‘contract-only’ awards made to Chinese companies. The most notable of these early on was the November 2019 US$121 million engineering contract to upgrade the facilities that are used to extract gas during crude oil production to the China Petroleum Engineering & Construction Corp. Similar ‘contract-only’ deals have been done by China across Iraq, including for its supergiant Majnoon oil field, to another hitherto unheard-of Chinese firm - the Hilong Oil Service & Engineering Company. 

This incremental loss of influence across the West Qurna 1 project was one of ExxonMobil’s problems. Another potentially far greater one emerged as the U.S. supermajor discussed its other major targeted deal in Iraq – the US$53 billion CSSP. At that time, both projects were to form a new core presence for the U.S. in Iraq based around cooperation in the energy sector with the Iraq authorities, following years of rising military and sectarian tensions across the country. The CSSP is the key to Iraq’s being able to jump from its long-running oil production of around 4-4.5 million bpd to 7 million bpd, then 9 million bpd, and perhaps even 12 million bpd, as also analysed in depth in my new book on the new global oil market order. This would allow it to become the world’s second-biggest crude oil producer, after the U.S. and ahead of Russia and Saudi Arabia. The CSSP involves taking and treating seawater from the Persian Gulf and then transporting it via pipelines to oil production facilities in order to maintain pressure in oil fields to optimise their output and longevity. The basic plan for the Project is that it will be used initially to supply around six million bpd of water to at least five southern Basra fields and one in Maysan Province, and then built out for use in further fields. However, both the longstanding stalwart fields of Kirkuk and Rumaila – the former beginning production in the 1920s and the latter in the 1950s, with both having produced around 80 percent of Iraq’s cumulative oil production – require major ongoing water injection. Although the water requirements for most of Iraq’s oilfields fall between these two cases, the needs for oilfield injection are highest in southern Iraq, in which water resources are also the least available.

ExxonMobil was brought into the CSSP initiative when it was first announced in 2010, to take the lead in co-ordinating initial studies for the plan at a time when Baghdad was looking to raise its oil production capacity to 12 million bpd by 2018, to overtake Saudi Arabia’s output. The U.S. firm was then removed in 2012 when negotiations fell through, and replaced by the state-run South Oil Company. By that time, it had become increasingly clear to the Americans that the Project was infused with massive risks to it that far outweighed the admittedly considerable rewards. Fully detailed in my new book, suffice it to say here that there were three key elements to the risk/reward matrix that formed the basis of those negotiations between ExxonMobil and the Oil Ministry. These were cohesion, security, and streamlining, a senior source who works closely with the Ministry exclusively told OilPrice.com at the time. “Cohesion related to ensuring the facilities that are connected to the CSSP are completed in order and in full, security related to the on-the-ground security of personnel and to the basic soundness of the business and legal practices involved in the agreement, and streamlining meant that any deal should continue as agreed, regardless of any change in government in Iraq,” he said. “The basic problem was that the [Oil] Ministry and other officials connected with the CSSP expected to receive commissions for anything they did, which might look a lot like bribery if they ever came to light, but if the payments weren’t made then the project simply would not have progressed,” he added. “The standard commission here is 15 percent, but it can rise to 30 percent or more, so with the development cost having risen to US$53 billion, Exxon[Mobil] was looking at under-the-counter payments of nearly US$8 billion, and that’s difficult to hide in any accounts, even if it wanted to do so,” he told OilPrice.com.

According to the source (and corroborated to OilPrice.com by two other senior sources connected to Iraq’s Oil Ministry at the time), ExxonMobil tried again in 2015 to reset negotiations with the Ministry back onto a normal business level by insisting that all the contracts relating to the CSSP were designed by independent Western risk experts and lawyers, and administered by independent Western accountants, but such demands came to nothing. “Ultimately, Exxon[Mobil] was not willing to take the risk to its reputation or to that of the U.S. government, and could not move forward with the CSSP, and it was from that point that it also started to look seriously at getting out of West Qurna 1 as well,” the source said. 

CNPC then tried to take up the CSSP where ExxonMobil had left off – as part of a broad-based set of deals with Iraq that gave China huge discounts on oil and gas produced, as also analysed in depth in my new book - but made very little progress. Thereafter, no real progress was made until the Oil Ministry eventually agreed to allow France’s TotalEnergies to move ahead with it as part of a four-pronged US$27 billion deal. According to source close to the Ministry, the government again sought to inveigle the French supermajor into similar arrangements that it had tried on ExxonMobil, but TotalEnergies stood firm as well – which was why the deal was postponed repeatedly until it was recently ratified. How this will pan out for the French is uncertain, as the overall drift of Iraq into the China-Russia sphere of influence continues.

By Simon Watkins for Oilprice.com 

Hungary Sets Course to Become EV Battery Powerhouse

HITLER HAD VOLKSWAGON 

ORBAN HAS EV BATTERIES

Hungary plans $2 billion worth of infrastructure investment in its second-biggest city as the country looks to become a top manufacturing hub for EV batteries and vehicles in Europe.   

Hungary will invest 700 billion Hungarian forints, or around $2 billion, to improve road and transport infrastructure and water and waste management in and near Debrecen, the country’s second-largest city after the capital city Budapest, Hungarian Construction Minister Janos Lazar said at a press briefing on Tuesday, as carried by Bloomberg

The infrastructure investments would be on top of the direct subsidies to companies with plants in the region, including BMW and Contemporary Amperex Technology Co., Limited (CATL), the Hungarian minister added. 

In 2022, CATL said it would invest $8.1 billion (7.34 billion euros) to build a 100 GWh battery plant in Debrecen, which is CATL’s second battery plant in Europe after a manufacturing facility in Germany. CATL’s project was planned to supply both cells and modules to European automakers. 

BMW Group, for its part, announced in 2022 that it is building a high-voltage battery assembly for the vehicles of the NEUE KLASSE at its Debrecen site in Hungary.

BMW expects to create more than 500 additional jobs and invest more than $2.2 billion (2 billion euros) in the construction and launch of the entire plant by the end of 2025.  

Hungary is also attracting EV manufacturers from outside the EU. 

China’s top electric vehicle maker BYD said last month it would build its first European production factory in Hungary. The plant will be built near the southern city of Szeged, and is expected to create thousands of jobs, according to Hungarian Foreign Minister Péter Szijjártó

The plant “will be one of the largest investments in Hungarian economic history,” the minister said, noting that the Hungarian government would provide financial incentives to BYD for building the plant. 

By Michael Kern for Oilprice.com



NORWAY

Statkraft Plans $6.6 Billion Investment in Wind and Hydropower

Norwegian company Statkraft, Europe’s largest generator of renewable energy, plans a record investment of up to $6.6 billion (6 billion euros) in Norway’s wind and hydropower generation.

Up to $3.3 billion (3 billion euros) will go to upgrades and transformations of Norwegian hydroelectric power plants, and another up to $2.2 billion (2 billion euros) is earmarked for rehabilitation of dams and modernization of older power plants, Statkraft said on Monday.  

Around $1.1 billion (1 billion euros) is allocated to the renewal of existing and the construction of new onshore wind farms.

Statkraft’s investment program will help achieve more than double the current wind power production, which will rise to 2,500 gigawatt-hours (GWh), as well as 1,500-2,500 megawatts (MW) of increased hydroelectric power plant capacity, more than over 20% increase in installed capacity.

“The increased power needs of the future in Norway will mainly be covered by new wind power, but hydropower will still be the backbone of the Norwegian energy system with its unique features,” the company said.

Norway has an almost entirely renewables-based electricity system, with renewable resources accounting for 98% of generation, including hydropower with a share of 92%.

Hydropower plants accounted for 88% of Norwegian production capacity in 2023, while wind power plants made up 11% of power generating capacity.

“Today, Statkraft is presenting the largest investment program of its kind in hydro- and wind power in Norway for decades,” Christian Rynning-Tønnesen, chief executive of Statkraft, said on Monday.

“This will be a major contribution to the energy system in Norway and to the green transition. It will also have positive effects on the Nordic and European energy markets,” Rynning-Tønnesen added.

“We have fantastic wind resources in Norway. Onshore wind is the technology that can provide us with new power in the fastest and cheapest way before 2030,” said Birgitte Ringstad Vartdal, Statkraft’s Executive Vice President for the Nordic region.   

U.S. Defense Official Visits Guyana Over Threat To Oil-Rich Essequibo

As tensions with Venezuela continue to simmer over President Nicolas Maduro’s attempt to annex oil-rich Essequibo from Guyana, the U.S. is sending a top defense official to Guyana to discuss the situation. 

U.S. Deputy Assistant Secretary of Defense for the Western Hemisphere Daniel P. Erikson is visiting Guyana on Monday and Tuesday in what the U.S. Embassy in Guyana referred to as a push for a “bilateral defense and security partnership in support of regional stability”. Erikson will be meeting with the Guyanese government and military leaders, as well as with the regional bloc, the Caribbean Community (CARICOM). 

In December, Guyana and Venezuela vowed to avoid the use of force in the dispute, which escalated earlier last month after Maduro held a referendum to annex Essequibo, then vowing to force the exit of foreign oil producers who refused to comply. 

The Venezuelan parliament has yet to pass a law establishing Venezuela’s jurisdiction over the Essequibo region, which represents two-thirds of the territory of Guyana and is where its oil riches are concentrated.

Maduro is facing elections this year, and there has been significant speculation that the subject of the rightful ownership of Essequibo–a popular topic among Venezuelans–is being used to create a state-of-emergency situation that could justify the postponing of the elections. 

In the meantime, an easing of U.S. sanctions on Venezuela, which remains in place despite Maduro’s moves on Essequibo, where Exxon has made massive discoveries offshore, Venezuela’s oil exports rose 12% last year, reaching nearly 700,000 barrels per day. 

However, this pace of increase of crude oil exports remains slower than last year, with gains limited in part by a lack of investment necessary to boost production, Reuters reports. 

By Charles Kennedy for Oilprice.com